Energy Minister Chris Bowen has dismissed criticism from power companies following government plans to cap the price of gas and coal, but the opposition warned the centre-left Labor government’s plan will restrict supplies.
National cabinet on Friday agreed to cap gas at $12 a gigajoule and coal at $125 a tonne for 12 months, as part of a plan to lower rising energy prices.
The government will also provide $1.5 billion for energy bill relief measures, which will be paid for by state and governments.
Federal parliament will be recalled on Thursday in order to pass the laws.
While gas companies have taken aim at the plan, Bowen said retailers did not need to charge exorbitant prices….